We have audited the attached Balance Sheet of M/s. INTEGRATED
 THERMOPLASTICS LIMITED, as at 31st March 2012 and the annexed Profit
 and Loss Account of the Company for the Year ended on that date. The
 financial statements are the responsibility of the company''s
 management. Our responsibility is to express an opinion on these
 financial statements based on our audit.
 
 We conducted our audit in accordance with the auditing standards
 generally accepted in India. Those standards require that we plan and
 perform the audit to obtain reasonable assurance about whether the
 financial statements are free of material misstatement. An audit
 includes examination on a test basis, evidence supporting the amounts
 and disclosures in the financial statements. An audit also includes
 assessing the accounting principles used and significant estimates made
 by management, as well as evaluating the overall financial statements
 presentation. We believe that our audit provides a reasonable basis for
 our opinion.
 
 In accordance with the provisions of Section 227 of the Companies Act,
 1956, we report as under :
 
 1.  As required by the Companies (Auditor''s Report) Order, 2003 Issued
 by the Central Govt, under Section 227 (4A) of the Companies Act 1956,
 we enclose in the Annexure to our report the matters specified in the
 said Order.
 
 2.  Further to our comments in the Annexure referred to in paragraph 1
 above :
 
 a) we have obtained all the information and explanations which to the
 best of our knowledge and belief were necessary for the purpose of our
 audit:
 
 b) In our opinion, proper books of accounts as required by law have
 been kept by the company so far as it appears from our examination of
 those books;
 
 c) The said Balance Sheet and Profit and Loss Account referred to in
 this report are in agreement with the books of accounts;
 
 d) The said Profit and Loss Account and Balance Sheet comply with the
 Accounting Standards referred to section 211 (3C) of the Companies Act,
 1956 except in case of Accounting Standard AS-15 Accounting for
 Retirement Benefits in the Financial Statement of employers. The
 Company accounts for leave encasement on cash basis and provisions
 required at 31st March, 2012 have not been ascertained, hence we are
 unable to express our opinion in respect thereof (refer note no 21
 (A)(2)).
 
 e) In our opinion, as per the information furnished to us no Director
 is disqualified from being appointed as a Director under clause (g) of
 sub-section (1) of section 274.
 
 f) Subject to the foregoing, in our opinion and to the best of our
 information and according to the explanations given to us, the said
 accounts, read together with significant accounting policies in
 schedule 16 (A), and notes on accounts in schedule 16 (B) give the
 information required by the Companies Act, 1956, in the manner so
 required and give a true and fair view;
 
 i) In the case of the Balance Sheet, of the State of affairs of the
 Company as at 31st March 2012 and
 
 ii) In the case of the Profit and Loss Account, of the Profit of the
 Company for the year ended on that date.
 
 ANNEXURE TO THE AUDITOR''S REPORT
 
 (Referred to in paragraph 1 of our report of even date)
 
 ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITOR''S REPORT OF EVEN DATE
 
 1 a) The Company has maintained proper records showing full particulars
 including quantitative details and situation of fixed Assets.
 
 b) According to the information and explanations given to us the fixed
 assets have been physically verified by the management during the year
 and no discrepancies were noticed on such verification.
 
 c) No Substantial part of fixed assets have been disposed off during
 the year, which has bearing on the going concern assumption.
 
 2.  a) The stock of finished goods, stores, spare parts and raw
 materials have been physically verified by the Management during the
 year. In our opinion the frequency of verification is reasonable and
 adequate.
 
 b) The procedure of physical verification of stock followed by the
 management is reasonable and adequate having regard to the size of the
 company, the nature and volume of its business.
 
 c) The Company is maintaining proper records of inventory and the
 discrepancies noticed on verification between the physical stocks and
 the book records were not material and the same have been properly
 dealt with in the books of accounts.
 
 3.  a) The Company has taken loan from companies, listed in the
 register maintained under sec. 301 of companies Act, 1956, and the
 company has not granted loan to companies, firms or other parties
 listed in the register maintained under sec. 301 of Companies Act,
 1956.
 
 b) The rate of interest and other terms and conditions of loans given
 or taken by the company, secured or unsecured are prima facie not
 prejudicial to the interest of the company.
 
 c) The payments of the principal amount and interest amount are
 regular.
 
 d) There are no over due amounts of more than rupees one lac.
 
 4.  In our opinion, according to the information and explanation given
 to us there are adequate internal control procedures commensurate with
 the size of the company and the nature of its business with regard to
 purchase of inventory, fixed assets and for sale of goods. During the
 course of our audit, no major weakness has been observed in the
 internal control
 
 5.  a) According to the information and explanations given to us, we
 are of the opinion that the transactions that need to be entered into
 Register maintained under section 301 of the Companies Act, 1956 have
 been so entered.
 
 b) In our opinion and according to the information and explanations
 given to us, the transactions with parties with whom transactions
 exceeding the value of rupees five lacs have been entered into during
 the financial year at prices are reasonable, having regard to the
 prevailing market prices at the relevant time.
 
 6.  The provisions of section 58A and 58AA of the Companies Act, 1956
 are not applicable, as the Company has not accepted deposits from the
 public.
 
 7.  The Company does not have a formal internal audit department but
 the Company''s internal control procedures can be considered as an
 adequate internal audit system commensurate with the size and nature of
 its business through personal supervision of management in respect of
 purchase of stores, raw material including components, trading goods,
 plant & machinary and other assets and for the sale of goods.
 
 8.  Cost records under Section 209 (1) (d) of the Companies Act 1956,
 are not prescribed for the business carried out by this Company.
 
 9.  a) According to the information and explanations given to us the
 company is regular in deposting undisputed amounts payable in respect
 of Provident Fund, Investor Education and Protection Fund, Employees
 State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Customs Duty,
 Excise Duty, Cess and other statutory dues with the appropriate
 authorities, which were outstanding as at 31 st March 2012 for a period
 of more than six months from the date they become payable.
 
 b) There are no disputed statutory duties under Sales Tax/VAT / Income
 Tax Custom Tax / Wealth Tax / Excise Duty / Cess Duty pending for
 payment.
 
 10.  The Company has not incurred cash losses during the year and in
 the preceding year. The accumulated losses are Rs.13688393.59 as
 against the net worth of Rs.63059288.42.
 
 11.  Based on our audit procedures and the information and explanations
 given by the management, the company has not defaulted in repayment of
 dues to financial institutions.
 
 12.  According to the information and explanations given to us the
 company has not granted loans and advances on the basis of securities
 by way of pledge of shares, debentures and others securities
 
 13.  Clause No. XIII of CARO 2003 is not applicable to the company, as
 this company is not a chit fund/nidhi/mutual benefit fund/society.
 
 14.  Clause No. XIV of CARO 2003 is not applicable to the company, as
 this company is not dealing in shares, securities, debentures and other
 investment.
 
 15.  According to the information and explanations given to us the
 company has not given any guarantee for loans taken by others from bank
 or financial institutions.
 
 16.  Clause No. 4 (CVI) of the CARO-2003 is not applicable, as the
 company is not having term loans.
 
 17.  The funds raised on short-term basis have not been used for
 long-term investment and vice versa.
 
 18.  The company has not made any preferential allotment of shares
 during the year.
 
 19.  The company has not issued Debentures.
 
 20.  The company has not raised any money through public issue during
 the year.
 
 21.  Based upon the audit procedures performed and information and
 explanations given by the management, we report that, no fraud and or
 by the company has been noticed or reported during the year.
 
                                                For L.B.REDDY & CO.,
 
                                                Chartered Accountants
 
                                                          Sd/-
 
 Place : Hyderabad                               M. THIRUPALU REDDY
 
 Date : 14-08-2012                               Partner, M.No. 203098